Adding Up Retirement

JANET KIDD STERLING THE JOURNEY

It's the question everyone wants to know about retirement, and it's one of the hardest to answer: Am I on track?

Complex modeling software can forecast whether your portfolio will grow enough to cover future expenses, but it relies on so many variables that it often fails to resonate.

Ordinary net-worth statements carry a lot of non-retirement assets that can cloud the picture. And they don't account for whether or not we are good savers or have appropriate insurance, what we expect from Social Security or how much volatility is in our portfolios and income.

To make your own balance sheet for retirement, head for the computer. Start with the same structure as a personal net worth statement: Assets minus liabilities equal net worth.

Now click on a spreadsheet or grab a pencil and draw two columns:

Next week: Experts dig into the details behind the score card.

Have a retirement question? Write to yourmoney@tribune.com, or via mail at Your Money, Chicago Tribune, Room 400, 435 N. Michigan Ave., Chicago, IL 60611. If your letter is selected, we may include you and your question in a future column.